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Council approves $399,634.75 purchase of street sweeper from Elgin; staff recommended buying outright
Summary
The council voted to purchase an Elgin-brand street sweeper (Federal Signal subsidiary) outright for $399,634.75 after staff presented four financing options and recommended cash purchase as the lowest total cost.
City staff presented four options to replace a 15-year-old street sweeper: buy outright using motor-pool reserves, a five-year installment purchase agreement (IPA) at a quoted 4.67% rate, a multi-year lease, or a short-term rental. Staff said cash purchase is the lowest total cost and that funding is available in the adopted motor-pool budget.
"This option would spread the cost out over a 5 year period, but would increase the total cost of the unit by about $55,000," staff said when describing the IPA. Staff also noted that renting leaves the city responsible for maintenance during the rental period. Council members debated philosophies of pay-as-you-go versus installment financing, but the motion to buy outright carried.
Council member 13 moved to purchase outright from Elgin (a Federal Signal subsidiary) in the amount of $399,634.75, which includes a $5,000 tariff; another council member seconded the motion. The motion passed on roll call. Staff noted that the motor-pool fund has been accruing to support motor-pool purchases and that the purchase is under the budgeted amount. Griffin and Charlie answered council questions about disposal/trade-in options for the old sweeper and insurance/maintenance responsibilities.
Staff said the purchase will be charged to the motor-pool fund and the new unit will replace the existing 15-year-old unit; staff will follow normal procurement documentation and provide disposal options for the old vehicle.
